When a Person Throws a Cigarette Out of a Car

question 72

Multiple Choice

When a person throws a cigarette out of a car window and starts a brush fire, this is

• A) an example of an external benefit.
• B) an example of an external cost.
• C) an example of a public good.
• D) an example of market power.

---

Definitions:

Quantity of Output

Relates to the total amount of goods or services produced by a firm, industry, or economy within a specific time period.

Expected Price Level

The anticipation or forecast of the average level of prices of goods and services in the economy in the future.

Short-Run Aggregate Supply

Short-Run Aggregate Supply represents the total production of goods and services in an economy at a specific time, considering variable production costs and fixed capital.

Unemployment Rate

The percentage of people in the labor force who are unemployed and are actively trying to find a job.